US Tariff Upheaval: What the Supreme Court Ruling and New Surcharge Mean for UK Traders

2 March 2026

 

Recent developments in US trade policy have introduced both relief and renewed uncertainty for UK businesses trading with the United States.

The US Supreme Court has ruled that the President does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose broad global tariffs during peacetime. As a result, certain tariffs previously implemented under IEEPA have been invalidated.

For UK exporters, this may reduce duty exposure on affected product lines — and potentially open the door to refund claims where IEEPA-based tariffs were paid.

However, the relief may be temporary. In response to the ruling, the US administration has invoked Section 122 of the Trade Act of 1974, introducing a short-term global import surcharge. The current rate is 10% ad valorem, within the statutory maximum of 15%, and may remain in place for up to 150 days.

What This Means for UK Exporters and Importers

UK-origin goods entering the US may now be subject to a temporary 10% surcharge, unless specifically exempted. This has immediate implications for:

  • Pricing models and margin exposure
  • Landed cost calculations
  • US distribution and supply contracts
  • Long-term commercial planning

Importantly, other US tariff regimes remain unaffected. Section 232 (national security) and Section 301 (unfair trade practices) tariffs continue in force, as does the separate Section 122 authority.

For UK importers sourcing via the US, there may also be indirect cost increases if US suppliers pass on the impact of the surcharge.

In short, while one layer of tariff authority has been removed, another has been introduced.

Could Refunds Be Available?

Attention is now turning to whether duties already paid under IEEPA can be recovered.

Refund eligibility generally applies to the US Importer of Record (IOR), not the overseas exporter directly. However, UK exporters may benefit where:

  • They acted as Importer of Record in the US
  • They sold under DDP (Delivered Duty Paid) terms and absorbed tariff costs
  • They contractually reimbursed US customers for tariffs
  • Pricing structures reflected tariff-inclusive arrangements

Refunds are not automatic. Potential recovery routes may include:

  • Administrative refund processes through US Customs and Border Protection
  • Filing a protest within the 180-day statutory window
  • Litigation via the US Court of International Trade where appropriate

The key issue is whether duties were specifically collected under IEEPA authority. Section 232, Section 301 and Section 122 tariffs are not subject to refund under this ruling.

Time limits matter. Documentation — including entry summaries, tariff classifications and payment records — will be critical.

What UK Businesses Should Do Now

In the current environment, UK traders should:

  • Review product classifications and confirm exposure to the Section 122 surcharge
  • Identify whether past US entries were subject to IEEPA-based tariffs
  • Reassess Incoterms and contractual duty allocation
  • Evaluate whether the 180-day protest window remains open
  • Monitor official US publications for extensions, exemptions or rate changes

Political and legislative uncertainty remains. Congress could intervene, new authorities could be introduced, or litigation could continue. The US tariff environment remains fluid.

A Practical Opportunity — If Managed Correctly

For some UK exporters, this ruling may represent a genuine opportunity to recover previously absorbed tariff costs. However, refund recovery is procedural, time-sensitive and highly fact-specific.

Eligibility depends on how duties were applied, the tariff authority used, contractual terms agreed with US counterparts and whether statutory deadlines remain open. In many cases, documentation — including entry summaries, classification records and proof of payment — will determine whether a claim can proceed. 

In response to these developments, we are supporting businesses in reviewing US entries, assessing potential refund eligibility, interpreting tariff authorities and navigating the administrative process. For exporters who believe they may have absorbed IEEPA-related duties, a structured technical review can help clarify exposure and determine appropriate next steps.

In a shifting tariff environment, informed analysis — rather than assumption — remains the strongest safeguard for both compliance and commercial resilience.

 

Use this checklist to review whether a potential duty refund may apply to your business.

If your business may have paid duties under the tariffs discussed above, contact our team to explore potential refund eligibility.

 

By Carla Assunção, Chamber International

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